Canada clears Chinese bike manufacturers of dumping

The Canada Border Services Agency announced yesterday that its anti-dumping re-investigation concerning bicycles and frames from Taiwan and the People's Republic of China resulted in an all-clear: there will be no duties on Taiwanese and Chinese built bikes.

The CBSA is said to have carried out a comprehensive investigation of the Chinese bicycle industry and conducted verification visits at the premises of Chinese exporters. The CBSA found no evidence to demonstrate that "pricing of the bicycles and frames is substantially controlled by the [Chinese] government."

As a result, the Chinese exporters investigated will now be able to sell to Canada at lower prices without being subject to anti-dumping duty. However, the CBSA will continue to collect anti-dumping duty if the selling price to Canada is below the minimum prices established as a result of this review.

The CBSA initiated a re-investigation in March this year.

Anti-dumping measures have been in place on bicycle and frames since the Canadian International Trade Tribunal's injury finding of December 11, 1992, which was renewed on December 10, 1997 and again on December 9, 2002.

Since China was considered to be a non-market economy in the past, normal values for Chinese exporters previously were established based on costs or prices of bicycles sold in a third-country (i.e., a "surrogate" country) that has a market economy. This is usually Mexico.